Kraft Heinz Announces Arrangement to Sell Its Nuts Business to Hormel Meals

PITTSBURGH & CHICAGO–(Organization WIRE)–The Kraft Heinz Enterprise (“Kraft Heinz” or the “Company”) announced now that it has entered into a definitive agreement to offer its nuts business to Hormel Meals Corporation in a hard cash transaction for $3.35 billion. The proposed transaction is predicted to close in the first 50 percent of 2021, topic to regulatory review and approval.

The transaction features most goods bought below the Planters brand, together with single wide variety and mixed nuts, path mix, Nut-rition products, Cheez Balls, and Cheez Curls, as very well as Corn Nuts branded goods. The transaction also contains world wide intellectual home rights to the Planters manufacturer, matter to current third-celebration licenses in certain worldwide jurisdictions, and to the Corn Nuts manufacturer.

“This is a different momentous move in our immediate transformation of Kraft Heinz,” mentioned Kraft Heinz CEO Miguel Patricio. “It will help us to sharpen our emphasis on locations with bigger advancement prospective customers and aggressive edge for our powerhouse brand names. Inside our Real Foods Snacking system, this usually means a lot more aggressively driving real gas for little ones by Lunchables and authentic food alternatives like P3.”

As element of the Kraft Heinz running design, consumer-driven platforms and system roles help to concentrate its efforts inside of just about every geographic phase. Kraft Heinz prioritizes advancement places and usually takes strategic steps in which acceptable.

“This is a good example of applying agile portfolio management to strengthen our expansion trajectory,” reported Kraft Heinz CFO Paulo Basilio. “As we shift ahead, we plan to continue on deleveraging as we check out accretive investments to accelerate our technique.”

The enterprise getting offered contributed roughly $1.1 billion to Kraft Heinz’s internet profits for fiscal calendar year 2020, primarily in the U.S. segment.

Less than the phrases of the arrangement, Kraft Heinz will sell its Corn Nuts generation facility in Fresno, Calif., and Planters manufacturing facilities in Fort Smith, Ark., and Suffolk, Va. These services and their employees will continue to work in everyday program.

Perella Weinberg Partners served as the unique financial advisor to Kraft Heinz for this transaction, whilst Gibson, Dunn & Crutcher LLP served as its authorized advisor.

ABOUT THE KRAFT HEINZ Corporation

We are driving transformation at The Kraft Heinz Corporation (Nasdaq: KHC), motivated by our Intent, Let us Make Life Delicious. People are at the middle of every little thing we do. With 2020 web sales of around $26 billion, we are committed to expanding our legendary and rising meals and beverage models on a worldwide scale. We leverage our scale and agility to unleash the entire electricity of Kraft Heinz across a portfolio of 6 purchaser-pushed product or service platforms. As world citizens, we are devoted to building a sustainable, moral impact whilst assisting feed the planet in healthful, responsible ways. Study extra about our journey by traveling to www.kraftheinzcompany.com or next us on LinkedIn and Twitter.

Forward-Looking Statements

This press release consists of a amount of forward-seeking statements. Words these kinds of as “believe,” “expect,” “intend,” “focus,” “plan,” “improve,” “build,” “grow,” “will,” “accrete,” “enhance,” “create,” and versions of these words and phrases and equivalent future or conditional expressions are supposed to detect ahead-searching statements. These statements consist of, but are not restricted to, statements about the assets included in the proposed sale, that the sale is subject matter to customary closing problems which includes regulatory clearances, the anticipated quantity of influenced personnel, the timing of closing, anticipated gains of the proposed sale, impacts of the proposed sale on the Company’s business enterprise, money outcomes, prospects, and long run options, and other statements that are not historical details, every of which is primarily based on the Company’s recent beliefs, expectations, estimates, and projections. These forward-seeking statements are matter to a number of hazards and uncertainties, several of which are tricky to predict and past the Company’s handle, which could lead to real success to differ materially from all those indicated in the forward-hunting statements. People aspects contain, but are not limited to, the timing of or failure to acquire vital regulatory approvals or to fulfill any of the other problems to the sale, the Company’s capability to obtain supposed benefits of the sale, the predicted expenditures of the transaction, the good results of business transitions, and the risk things established forth in the Company’s filings with the Securities and Trade Commission, including the Company’s most a short while ago submitted Annual Report on Variety 10-K and subsequent reviews on Sorts 10-Q and 8-K. The Enterprise disclaims and does not undertake any obligation to update, revise, or withdraw any forward-wanting assertion in this press launch, other than as required by applicable legislation or regulation.